constrains their ability to manipulate information. We depart from this literature by introducing a cost to communicate. Our … parties trade off their reporting cost against the effect on the decision. Typically, they never reveal all information. A …

signal the quality differential. In both scenarios the firms may attempt to mislead at a cost. If firms advertise, in both …

evidence. The parties may misrepresent evidence in their favor at a cost. At equilibrium the two parties never testify together …